UK insurance premium financing and software company PremFina has raised USD33 million in equity and debt. The funds will be used to help PremFina expand into new global markets and meet high demand in the UK. PremFina is fully regulated by the Financial Conduct Authority (FCA).
Talis Capital participated in the oversubscribed round, which included Japan’s Rakuten Capital and the UK’s Draper Esprit led, alongside global investors Thomvest Ventures, Emery Capital and Rubicon Venture Capital.
PremFina promotes financial inclusion within the insurance industry by eliminating the financial strain of an upfront lump-sum payment. PremFina funds the upfront payment of an insurance premium to an insurer, on behalf on an insured party. The insured party then repays PremFina via monthly instalments, including a finance fee. To better enable insurers to offer this option, PremFina provides insurers with a standalone, white-labelled software solution.
PremFina is the first premium finance company in the UK to receive venture funding. PremFina’s white label premium finance solution greatly improves brokers’ efficiency and profitability, through greater control of their premium finance offerings and customer relationships.
“The participation of a suite of investors in our oversubscribed round highlights the vast opportunity ahead for PremFina,” says Bundeep Singh Rangar, CEO of PremFina. “Premium financing is an industry that has been crying out for innovation. The incumbents have remained largely unchallenged due to age-old barriers to entry, such as the funding required to finance insurance premiums, and the regulatory compliance and technological capability needed to meaningfully enter the market. Consequently, insurtech has lagged behind other areas of fintech in terms of innovation. We are delighted that PremFina has overcome these barriers, and we look forward to working with our new investors.”
“Bundeep and the team have built a compelling proposition for the premium finance market, which is a significant market dominated by a handful of incumbents. We look forward to supporting their growth both in the UK and internationally,” says Vasile Foca, Managing Partner at Talis Capital.
